Is Upgrading Your Equipment Possible When You Finance?

July 23, 2021

The myths of leasing and financing may be holding you back from acquiring the equipment your business needs.

Video Transcript

Speaker: Asher Zallik, Senior Financing Consultant

Asher Zallik: The myth I want to debunk in this video is that financing equipment makes it difficult, if not nearly impossible to upgrade later. Now, this is a really good one to talk about with your financing consultant because traditionally equipment financing agreements are fixed total re-payables. Now however, Beacon Funding, like many best in-class finance companies, offer equipment upgrade programs.

Asher Zallik: Here at Beacon, we personally underwrite hundreds of these upgrades annually. Basically how it works is you exit your current contract and replace it with a newer, larger transaction. The financing company will forego all the remaining financing charges on the first contract and honor the terms of the new agreement. Now, this is a win win for both the customer and the finance company alike, because the business grows gradually into newer, larger equipment, and the finance company mitigates a little risk and exposure.

Asher Zallik: Oftentimes when I'm talking to my customers about upgrade payoffs, they're either hoping to sell their equipment or trade it in. This allows them to upgrade their equipment midstream with no additional financing charges and also grow their business without taking on 2 monthly payments at the same time. It's very important to speak with your lender about their upgrade payoff options because they can vary from company to company. But generally, it is a consistent offering in the equipment finance industry. According to the Equipment Leasing and Financing Association, half of all commercial equipment purchases in 2019 were financed. Now, this just goes to show that financing is a widely used option by many businesses in the US. many businesses in the US. Now don't let the myths and misconceptions of the industry hold you back from growing your business. To supercharge your business today, schedule your financing consultation at at Feel free to leave any questions in the comments and we'll be sure to get back to you with your answers at our earliest convenience. Thanks!

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